Hard drive manufacturer Western Digital has bought media supplier Komag for £500 million.
The purchase means that Western Digital has now vertically integrated its manufacturing of hard drives as well as the sourcing of one of the critical components of the drive – the magnetic disks.
"This acquisition is a significant step in the evolution and differentiation of WD as a leader in the worldwide hard drive industry," said John Coyne, WD President and Chief Executive Officer. "It enables WD to optimize synergies through the integration of heads and media, secure our long-term supply of media, and sharpen our ability to deliver high quality, highly reliable and cost-effective products to our customers."
"We believe that Komag's highly-skilled employees, an industry-leading position with perpendicular magnetic recording media, and its operational excellence will further strengthen WD's competitive position. Together, we have the right team to deliver on WD's strategy to achieve profitable growth," he added.
Tim Harris, Komag's Chief Executive Officer stated, "We believe WD is the best partner for Komag and are very excited by the benefits this transaction delivers to both our shareholders and employees. In particular, we believe the transaction with WD provides our shareholders with an attractive price as well as value certainty."
"The acquisition of Komag by WD is the natural next step in the customer-supplier relationship between the two companies. WD is closely embedded as a customer in Komag's processes and is uniquely positioned to benefit from the Komag media capabilities," added Harris.